Court: NLV can hike Pardee’s water rate

Monday, April 16, 2001 | 11:40 a.m.

CARSON CITY -- The Nevada Supreme Court has ruled that North Las Vegas can raise the water rates of Pardee Construction Co. of Nevada, which purchased 1,080 acres in 1988 for a planned development of 8,500 homes.

The court reversed the decision of District Judge Sally Loehrer, who ruled a contract between the city and the company prohibited any new or increased development impact fees. The contract, however, allowed new cost-based fees.

So far about 2,500 to 3,000 homes have been developed in the area, called El Dorado.

The city receives its water from the Southern Nevada Water Authority, which raised its rates to finance additional construction to serve the growing needs of the area. The city decided to pass on all additional charges to its customers.

In 1996 it adopted a regional connection charge on all new development and imposed a regional commodity charge to cover the cost. Pardee filed suit in August 1996, saying its agreement with the city for no increased development impact fees had been violated.

The Supreme Court Friday agreed with the city that the regional water connection charge was a cost-based fee, because the city simply passes on to the developer the amount the water authority charges the city. The city does not keep any of the increased revenue.

North Las Vegas officials maintained during oral arguments in December that the city has already paid $2.2 million in fees to the water authority on behalf of Pardee. They said the cost could balloon to $10 million.